Grant Thornton To Pay $10M In Winstar Fraud Settlement

Law360, Los Angeles (July 15, 2013, 7:33 PM ET) -- Grant Thornton LLP agreed on Friday to pay $10 million to settle claims it helped conceal a $1 billion revenue hole at now-bankrupt Internet service provider Winstar Communications Inc.

Italian private bank Banca Intermobiliare, Detroit-based Drye Custom Pallets Inc. and Robert Ahearn led a class of plaintiffs alleging that the nation’s sixth-largest accounting and advisory firm knew Winstar was concealing losses when it audited the company in 1999, but failed to report the problems.

“We are pleased with the settlement and look forward to it receiving...
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